GM Offering Voluntary Employee Separation Program As New Cost-Cutting Measure16
GM has announced a limited time voluntary separation program (VSP) as part of an ongoing effort to reduce fixed costs and achieve $2 billion in cost savings over the next two years.
Per a statement from GM spokesperson David Barnas, the new GM VSP will be available to all U.S. salaried employees with at least five years of service, and all global executives with at least two years of service.
“This voluntary program offers eligible employees an opportunity to make a career change or retire earlier,” Barnas said. “We are offering three packages based on level and service to the company. Employees are strongly encouraged to consider the program.”
U.S. salaried employees with at least five years of service are eligible for 1 month of pay for every year of service (up to 12 months) and COBRA, as well as a pro-rated team GM performance bonus and outplacement services. Meanwhile, all global GM executives with at least two years of service are offered their base salary, incentives, COBRA, and outplacement services.
Eligible employees must sign up for the new VSP by March 24th, 2023. Those who elect to take the VSP will depart the company by June 30th, 2023.
The announcement of the new VSP follows a report that GM was implementing a new round of job cuts affecting “a relatively small number of salaried employees and executives,” with roughly several hundred jobs eliminated, primarily in the U.S.
In addition to reducing salaried staff through attrition, GM’s efforts to reduce fixed costs also include a reduction in vehicle complexity and the wider use of shared subsystems between ICE-based platforms and future electric vehicle programs. GM states that it is also focusing investment in growth initiatives to accelerate near-term benefits, and decreasing discretionary spending across all parts of the company.
“By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market,” Barnas said.
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Mary needs to take this payment for the benefit of GM.
Either Mary goes. Or GM goes chapter 7.
You mean the GM that doesn’t acknowledge any American holidays internally supports China with a blind eye and does business with countries like the UAE they don’t support women’s rights. Sounds like a lot of freedom.
Stapleton’s a mindless drone who spews the same rubbish in every article.
He/she/it can’t be reasoned with.
Anybody of value will be gone and moving on to the next gig, while the dead-weight they actually want to get rid of will be the ones to remain — and then they’ll have to fire them anyway.
GM took the hacksaw approach, when the surgery called for a scalpel.
Save millions. Shut down OnStar!
Save billions and shut down Cruise!
I am unfamiliar with the details of the outplacement services, but otherwise, the terms are really not that great…esp. for execs…except of course it’s a little bonus for people that planned on exiting soon anyway.
Regardless, this isn’t a move for a company that’s doing well…I’ve interacted with a dozen or so Chevy dealers, and can say that the dealer network is NOT helping pull more customers to GM…based on my own experience, it’s surprisingly (and sadly) bad compared to several other makes…
Just as one example, a several years ago, the dealer that sold me my Corvette new lost me when I called service to get a quote for a new clutch master cylinder. They said they’d have to diagnose it before quoting it…I told them I know exactly what I need, and just want the quote for the part/replacement work…they told me to call somewhere else. That’s exactly what I did.
The worst experience I had was a Chevy dealership wanting to charge me the diagnostic fee for warranty work. I ended up not paying it but that’s how the conversation started.
I bet all those salaried employees are just tickled about the woke move to electric vehicles.
I knew this would happen a year after I retired. Dang.
GM trimming costs knowing that a blood bath of an EV price war is coming. There will be casualties.
Mary’s in charge. Who needs to be a full line auto company? Go look any parking lot. Unless it’s Michigan, they are filled with Kia’s Hyundai Toyota you name it. I think if the engineering and manufacturing of these vehicles were still with GM or Ford, these layoffs would be minimal.
No excuses, Mary has run it into the ground. I guess you can buy a EV or ride the bus. Good luck.
No need for the GM toadies to explain it. Jobs gone, families ruined.
you meant gm China?